Group Auto Insurance – When It is Worth It, and When It is Not

By Ricky LawrencePublished: Thursday, February 4th, 2010

Group auto insurance is a coverage scheme designed to provide services for associations. This way, a lot more people are given the opportunity to get covered without the usual hassle and inconvenience of having to apply for one.

However, not all people can benefit from group auto insurance. There will be times when getting the contract would be advantageous to the beneficiary and there will be times when doing so will only bring them more problems.

Here are instances when getting group auto insurance is worth it.

First, it makes the application process much faster and easier. This is the main design of the system because a single person can go to a provider and apply for coverage, instead of all members going themselves. You can already see that it saves time and money.

Second, it allows a company to take out a single policy covering several beneficiaries. It becomes more convenient for all parties involved. For example, a single policy can be issued to include all the members of a car enthusiasts club. They can just send a representative to negotiate for the policy.

Third, it generally allows a greater opportunity to get discounts. The truth is that providers like getting a lot of clients. To attain this, they give out promotions and discounts. It is like hitting two birds with one stone, so to speak. It will be easier to ask for accommodations when applying for coverage for an entire association.

Then again, there are instances when getting group auto insurance is not worth it.

For instance, if you are a prudent and responsible driver, and the rest of your co-insured are not, it is better to get your own coverage because their blunders might have a negative effect on your own policy. This is particularly true when you are the only one who has had a formal driver’s training, or if you are the only person in your department who has enough reason not to commit a DUI.

The policy must contain certain terms and conditions which are not amenable to all beneficiaries. The probable effect is that there will already be deadlocks as early as the negotiation stage. See, getting covered is not as simple as signing a contract. Negotiations have to take place, especially when there is more than one beneficiary. In this type of coverage, you can expect a lot of problems as early as in the negotiation stage.

This type of policy works for some people, but not for everyone. It will be wise for both company and organization to work things out and explore all avenues before they decide to transact.